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SAP continues strong year with SSC cloud launch

by Justin Hendry •
Free resource

The federal government’s only dedicated shared service provider has become the jurisdiction’s inaugural user of SAP’s HANA Enterprise Cloud service, hosted within Canberra Data Centres (CDC).

The Shared Services Centre (SSC) will deploy the solution to support HR and Finance Enterprise Resource Planning (ERP) services, and provide the solution to “government agencies currently using the SSC’s ERP platform,” a spokesperson from the Department of Employment said.

The SSC currently provides a range of IT-related services to 14 agencies including the Department of Education and Training, Employment, Department of Social Services, and Department of Prime Minister and Cabinet.

The “highly scalable” private cloud platform has been established in facilities run by CDC in partnership with Hewlett Packard, and supports “a full range of cloud deployment options including fully managed and hybrid,” according to an SAP media release. CDC currently runs three data centres – one in Fyshwick and two in Hume.

“This offers elasticity and flexibility with all-inclusive subscription-based pricing for SAP software and infrastructure. Customers can also run any SAP HANA workload – including the flagship SAP S/4HANA suite of business applications.”

“The new Canberra facility also addresses the requirements of many Australian Federal agencies that are eager to apply the real-time capabilities of in-memory computing in the cloud, but have concerns about hosting data offshore.”

SAP and Employment – the agency responsible for conducting procurements on behalf of the SSC – signed a HANA Enterprise Cloud Project and Production Software contract in January for $5.2 million. The value of the contract, which runs between 23 December 2015 and 17 April 2019, has since increased to $5.6 million following two amendments in March and April.

Since developing its service offerings to government clients, with the launch of its Sydney data centre in April 2014 and Canberra data centre in the second quarter of 2015, SAP’s market position has improved significantly.

“The planned investment in this initiative aspires to support Australian government agencies in developing a platform and solutions to improve government processes more broadly, from human capital management and finance, to asset and case management,” SAP stated in a media release at the time.

SAP’s total contracting value with the federal government was approximately $132.3 million in 2014-15, and already $129.2 million so far in 2015-16, according to Intermedium’s Analyse IT tool. SAP was responsible for 82 contracts worth $65.6 million in 2013-14.

SAP currently provides software and IT services to over 20 agencies, including the Department of Defence, Department of Health and the Department of Human Services.

The Shared and Common Services Programme­, which is intended to begin from 1 July 2016, could see a Whole-of-Government shared services delivery model replace a number of current agency back office arrangements. The consolidation of ICT services is to be considered within a second phase of the Programme.

SAP HANA has a strong foothold in New South Wales law enforcement and emergency services authorities, with the Attorney-General’s Department, Ministry for Police and Emergency Services, Fire and Rescue NSW, NSW Rural Fire Service and the State Emergency Services all operating on a single instance of SAP Business Suite powered by SAP HANA.

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